Crowdfunding is everywhere. Whether you need something for the development of a new gadget or you need help starting up a new business, it has proven to be highly successful and effective. But what about when it comes to starting a newspaper or finding financial relief for a struggling one? Could it help you in those situations?
SEE ALSO: 2013′s Best Newspaper Success Stories
Raise the Funds You Need
Crowdfunding makes it possible to raise the funds you need. You state why you need the funds and then need to keep following up to show your investors how the project is going. The investors are a series of small ones, instead of trying to land the backing of large investors who have more to risk should the project go south.
The problem is journalism has a big question over it, leading many people to say no when asked. It requires creativity to start a campaign and get investors in. Spreading out the funding through something like crowd-funding has proven to be more effective because there is less risk for the individuals.
It Depends on the Stories
Studies have shown that the success of getting funding will depend on the type of stories being created. Newspapers with the aim to raise general awareness of a topic, whether it is global or political, will find it harder to raise the funds needed than those covering a topic that will offer advice and guidance to the readers.
This can lead to problems for the newspapers. To get the crowd-funding, they need to offer stories that don’t public awareness. It can lead to questionable entries and news that the majority of readers aren’t interested in. There still needs to be a good balance, and the investors need to be aware of that without the risk of losing their funding.
The Quality of the Journalist
It can also depend on the journalists writing the story. Those with less journalism experience found it easier to raise the funds in the studies. While this could seem positive as it gives new and upcoming journalists a chance, there is a downside. It could mean a newspaper is full of unqualified and non-experienced journalists, leading to a lack of credibility for the paper.
There still needs to be a good balance. The newer journalists can craft the creative marketing for the funding, but there are still more experienced journalists on hand to ensure the credibility of the paper remains.
Watch Out for the Fees
There are some downsides to crowdfunding that can really affect journalists, especially those working on solo projects. Most of the crowdfunding websites take a percentage of the amount raised, and then there are fees when moving the money to PayPal and other financial transferring websites. Those who then need the money in a different currency will also need to look into the exchange rates.
Crowdfunding can help newspapers get the money they need for specific stories, boost their struggling paper or start up a new one. However, there are some considerations to make. Despite the investors wanting the news to move in one direction, it is still important to focus on credibility and quality of the paper.